Question 1

Which global company has dissolved its matrix structure in order to achieve "greater speed and efficiency by further focusing and flattening the organization"?

Accepted Answer

ABB announced the dissolution of its matrix structure to enhance speed and efficiency through a more focused and flattened organizational hierarchy.

Question 2

The organization design in which an employee reports to both a country manager and a functional manager is a(n):

Accepted Answer

A matrix structure is characterized by an arrangement where employees report to more than one manager, typically to both a functional manager and a product, area, or project manager. This design is often used in multinational companies to manage the complexities of operating in different countries while maintaining functional expertise.

Question 3

Sony,Sharp,Panasonic,and other Japanese manufacturers are all experiencing declining sales of traditional electronics products,whereas Apple and Samsung have risen to prominence in the competitive landscape once dominated by the Chinese.

Accepted Answer

Sony, Sharp, Panasonic, and other Japanese manufacturers have faced challenges in the electronics market, but it's not accurate to say that Apple and Samsung's rise to prominence was in a landscape once dominated by the Chinese. Apple and Samsung are South Korean and American companies, respectively, and their rise has been more directly in competition with Japanese firms rather than Chinese companies dominating the landscape.

Question 4

Which form of organization design is capable of integrating geographic knowledge,product knowledge,functional competencies,and customer knowledge?

Accepted Answer

The matrix structure is designed to facilitate the integration of multiple dimensions of knowledge and competencies, including geographic, product, functional, and customer knowledge, by creating dual lines of authority and combining different organizational perspectives.

Question 5

Des Moines,Iowa-based Meredith Corporation participates in international markets by means of foreign licensing agreements that are administered by a copyrights and contracts manager.

Accepted Answer

Meredith Corporation, based in Des Moines, Iowa, engages in international markets through foreign licensing agreements, which are managed by a copyrights and contracts manager. This approach allows them to extend their brand and content globally while ensuring legal compliance and protection of their intellectual property.

Question 6

The increasing importance of the European Union (EU)as a regional market has prompted a number of companies to change their organizational structures by setting up regional headquarters there.

Accepted Answer

Many companies have indeed adjusted their organizational structures to better navigate and leverage the opportunities presented by the European Union's integrated market, setting up regional headquarters within the EU to streamline operations, ensure compliance with EU regulations, and enhance market penetration.

Question 7

A potential advantage of the organization on product basis is that the local input from individual country managers may not be ignored,with the result that products will be sufficiently tailored to local markets.

Accepted Answer

The answer of A potential advantage of the organization on...

Question 8

Management writers often use terms like silos,stovepipes,or chimneys to describe an organization in which autonomous business units operate with their own agendas and a minimum of horizontal interdependence.

Accepted Answer

These terms are metaphors used to describe organizational structures where departments or units work in isolation, focusing on their own goals without much collaboration or communication with other parts of the organization.

Question 9

Having established that the matrix organizational structure is appropriate,management can expect to integrate the following competency on a worldwide basis:

Accepted Answer

The answer of Having established that the matrix organizational structure...

Question 10

The key to successful matrix management is ensuring that managers are able to:

Accepted Answer

The essence of matrix management lies in its ability to navigate and reconcile the complexities and competing demands inherent in a matrix structure. This involves resolving conflicts between different parts of the organization and achieving integration across diverse functional and project-based teams.

Question 11

A CEO has to look at the entire global economy and then put the company's resources where they will capture the biggest market share of every region.

Accepted Answer

A CEO should consider the global economy but must also factor in the company's strengths, target market, competitive advantage, and strategic fit rather than aiming to capture the biggest market share in every region, which may not be feasible or strategic for every company.

Question 12

No single correct organizational structure exists for global marketing.

Accepted Answer

Different organizations may adopt various structures for global marketing based on their size, strategy, product lines, and market dynamics, indicating that there is no one-size-fits-all structure.

Question 13

A key issue in global organization is when to achieve balance between autonomy and integration.

Accepted Answer

The answer of A key issue in global organization is...

Question 14

The matrix organization is inappropriate when the market is demanding.

Accepted Answer

The matrix organization, which combines functional and project-based structures, can be particularly effective in dynamic and demanding market environments. It allows for flexibility, efficient resource allocation, and the ability to respond quickly to market changes by leveraging expertise across different functions.

Question 15

When Hershey created its international division in 2005,J.P.Bilbrey,the division's senior vice president,noted that Hershey would no longer utilize the extension strategy of exporting its chocolate products from the United States.

Accepted Answer

In 2005, J.P. Bilbrey indicated that Hershey would shift from exporting to producing locally in international markets to better cater to local tastes and reduce costs.

Question 16

By the early 2000s,Sony was faltering due to the rapid consumer acceptance of flat-panel wide-screen TV sets.

Accepted Answer

The answer of By the early 2000s,Sony was faltering due...

Question 17

The matrix organization requires fundamental changes in management behavior,organizational culture,and technical systems.

Accepted Answer

The answer of The matrix organization requires fundamental changes in...

Question 18

There is general agreement that the matrix design is the single best organization structure for global marketing.

Accepted Answer

There is no consensus that the matrix design is the best organizational structure for global marketing, as the effectiveness of organizational structures varies based on the company's size, strategy, and market environment. Different companies may find success with different structures such as global, multi-domestic, international, or transnational models depending on their specific needs and challenges.

Question 19

As markets globalize,and as Japan opens its own market to more competition from overseas,more Japanese companies are likely to stick to the traditional organization patterns.

Accepted Answer

As markets globalize and Japan opens its market to more competition, Japanese companies are more likely to adapt and change their traditional organization patterns to remain competitive and responsive to global market demands.

Question 20

Boeing has reorganized its commercial transport design and manufacturing engineers from functional lines into a matrix organization.This new design is expected to have all of the following benefits except:

Accepted Answer

The matrix organization is designed to facilitate collaboration across different functions, such as engineering and manufacturing, to lower costs, solve problems more efficiently, unite processes, and enhance product consistency. However, it does not inherently provide customer contacts, as its primary focus is on internal organization and efficiency rather than external communication.

Quiz 17: Leadership, organization, and Corporate Social Responsibility